Court orders Raniere to pay $444,000 in legal fees

1of32In this courtroom sketch Keith Raniere, second from right, leader of the secretive group NXIVM, attends a court hearing Friday, April 13, 2018, in the Brooklyn borough of New York. In March federal authorities raided an upstate New York residence connected to the group and Raniere, who is accused of coercing female followers into having sex and getting branded with his initials, was later arrested in Mexico where the group also runs programs. Seated, from left, are defense attorney Paul DerOhannesian II, a US marshal, Raniere, and defense attorney Marc Agnifilo. (Elizabeth Williams via AP)Elizabeth Williams2of32

Keith Raniere, summer 2011, Halfmoon.

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Federal complaint against Keith Raniere and NXIVM

Court paperwork4of32FBI and state police gather evidence from the home of NXIVM co-founder Nancy Salzman on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron5of32

Keith Raniere is pictured following his arrest by Mexican federal authorities in March 2018. (Photo courtesy Frank Parlato/ArtVoice)

Photo courtesy Frank Parlato/ArtVoice6of32NXIVM leader Keith Raniere and Allison Mack appear in a group of videos titled "Keith Raniere Conversations," that were published on YouTube on April 9, 2017. (Keith Raniere Conversations/YouTube)7of32

Pamela Cafritz, center, allegedly hired the 12-year-old daughter of a Consumers' Buyline worker in 1990 to walk her dog, after which Keith Raniere, the girl now says, drew her into a sexual relationship. Police declined to pursue the case years later. WIth Cafritz here are Sara, left, and Clare, right, Bronfman, financial backers of NXIVM and Raniere, leaving the Dalai Lama's 2009 visit to Albany, which the Bronfmans arranged. (Patrick Dodson / Special to the Times Union)

Patrick Dodson8of32FBI and state police take computers and other evidence from the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron9of32

NXIVM leader Keith Raniere and Allison Mack appear in a group of videos titled "Keith Raniere Conversations," that were published on YouTube on April 9, 2017. (Keith Raniere Conversations/YouTube)

Keith Raniere Conversations/YouTube10of32Actress Catherine Oxenberg, left, arrives at federal court with Stanley Zareff and Toni Natalie, who is Keith Raniere's ex-girlfriend, for the arraignment of NXIVM leader Raniere on Friday, April 13, 2018, in New York. Oxenberg's daughter India has been named as a co-conspirator in a criminal complaint against Raniere. (AP Photo/Kevin Hagen)Kevin Hagen11of32Attorneys representing NXIVM leader Keith Raniere, Mark Agnifilo, right, and Paul DerOhannesian, II, center, leave following Raniere's arraignment in federal court on Friday, April 13, 2018, in New York (AP Photo/Kevin Hagen)Kevin Hagen12of32Clare Bronfman, pictured here in 2009, has been accused by a former NXIVM associate of ordering financial probes of six federal judges and U.S. Sen. Charles Schumer. (John Carl D'Annibale/Times Union archive)John Carl D'Annibale13of32

Nancy Salzman, NXIVM's president, during an interview Silver Bay Center on Lake George, for Vanguard week, on August 27, 2003. Her guilty plea marked the unraveling of Raniere's inner circle and the breakup of a close relationship she and Raniere had since they met in the mid-1990s. (Will Waldron/Times Union)

14of32Actress Catherine Oxenberg, left, departs with Stanley Zareff and Toni Natalie, who is Keith Raniere's ex-girlfriend, following the arraignment of NXIVM leader Raniere in federal court on Friday, April 13, 2018, in New York. Oxenberg's daughter India has been named as a co-conspirator in a criminal complaint against Raniere.Kevin Hagen/AP15of32FBI and state police take computers and other evidence from the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron16of32FBI agents obtained a search warrant last week for this Halfmoon townhouse that federal authorities said NXIVM founder Keith Raniere used as a secret lair. (Lori Van Buren/Times Union)Lori Van Buren17of32Townhouse at 8 Hale Dr. on Wednesday, April 5, 2018 in Halfmoon, N.Y. This is the second residence raided last week by the FBI owned by a corporation tied to NXIVM. (Lori Van Buren/Times Union)Lori Van Buren18of32An FBI sniffer dog is brought to the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron19of32Sarah Edmondson shows the brand she received as part of a secret sorority ritual while part of the self-help group Nxivm, in Vancouver, British Columbia, Canada, July 27, 2017. Edmondson, who has left the group, and other former followers of Keith Raniere, the leader of the group, said they were focusing on recovering. ?“There is no playbook for leaving a cult,?” Edmondson said. (Ruth Fremson/The New York Times) ORG XMIT: XNYT176RUTH FREMSON20of32There was no sign of activity at the NXIVM meeting place on Route 9 on Monday afternoon, March 26, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation, has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron21of32FBI and state police take computers and other evidence from the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron22of32FBI and state police take computers and other evidence from the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron23of32Federal agents raid the home NXIVM co-founder Nancy Salzman on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron24of32Federal agents raid the home NXIVM co-founder Nancy Salzman on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron25of32Federal agents raid the home NXIVM co-founder Nancy Salzman on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron26of32Federal agents raid the home NXIVM co-founder Nancy Salzman on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron27of32The home NXIVM co-founder Nancy Salzman was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron28of32An FBI sniffer dog is brought to the home NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron29of32FBI and state police gather evidence from the home of NXIVM co-founder Nancy Salzman on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron30of32Evidence documenting supplies are taken from the home of NXIVM co-founder Nancy Salzman as FBI and state police raid the property on Tuesday evening, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron31of32FBI and state police take computers and other evidence from the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron32of32FBI and state police take computers and other evidence from the home of NXIVM co-founder Nancy Salzman which was raided by federal agents on Tuesday, March 27, 2018, in Halfmoon, N.Y. Keith Raniere, the co-founder of the NXIVM corporation has been arrested by the FBI based on a federal criminal complaint filed in the Eastern District of New York. (Will Waldron/Times Union)Will Waldron

ALBANY — A federal appeals court in Texas has ordered NXIVM founder Keith Raniere to pay more than $444,000 in attorneys' fees to AT&T and Microsoft in a case in which he claimed the companies had marketed teleconferencing services using technology from patents that he owned.

A federal judge threw out the case last year and ordered Raniere to pay the two companies' legal fees after finding that Raniere offered no evidence that he owned the patents and allegedly gave contradictory and misleading testimony.

The patents were assigned to a company in Spokane, Wash. — Global Technologies, Inc. — and listed Raniere and three others as the inventors, records show. The patents detailed technology to allow teleconferencing over standard telephone lines while users could exchange data and other electronic information without interruption.

The federal judge said that Raniere failed to produce any written documentation or other credible evidence that he had an interest in GTI that would allow him to transfer the patents to himself, as he claimed had been done.

"Raniere also testified that his ex-girlfriend held her shares in the corporation in trust for him, based on a side letter executed between these parties, but he did not have possession of that letter nor did he know where the letter could be," the appellate court said in its decision this week. "The district court found that Raniere’s testimony surrounding the alleged transfer contradicted Raniere’s earlier representation that the shares had already been transferred to him and was 'wholly incredible and untruthful.'"

The district court judge who threw out the case said that "an award of fees is the least severe sanction adequate to deter similar conduct by (Raniere) in the future and to preserve the integrity of the court.”

The court awarded $300,295 to AT&T and $143,719 to Microsoft in attorney fees and costs.

The appellate decision was handed down as Raniere remains in the custody of U.S. marshals in an unrelated criminal case in which he is charged with sex trafficking and conspiracy to commit forced labor.

Raniere has been incarcerated without bond since he was deported from Mexico on March 25 and taken into custody by federal law enforcement officials in Texas. He is being held at the Metropolitan Detention Center in Brooklyn; a hearing in his case is scheduled to take place April 27.

It's unclear if Raniere has financial assets to pay the penalty in the civil case. The Justice Department said that for the past 18 months Raniere had been using a credit card and bank account in the name of a former NXIVM associate and girlfriend, Pamela Cafritz, who died in November 2016.

Federal prosecutors said the bank account has about $8 million, but have not said whether they would move to seize the account.

Brendan J. Lyons joined the Times Union in 1998 as a crime reporter before being assigned to the investigations team. He became editor of the investigations team in 2013 and joined the Capitol Bureau in 2017.